Qi Xiang Tengda publishes its 2020 annual report. In 2020, the company achieved a total operating income of 24.686 billion yuan,-17.87% compared with the same period last year, and a net profit of 976 million yuan, + 57.25% over the same period last year. Among them, 2020Q4, the company achieved operating income of 8.353 billion yuan, home net profit of 189 million yuan, + 95% year-on-year, month-on-month ratio of-39%. We believe that the decline in Q4 net profit is mainly due to the company's large asset impairment loss in the four-quarter meter.
According to the first quarterly report of 2021, the company's 2021Q1 net profit was 667 million yuan, an increase of 237% over the same period last year.
The company plans to pay a dividend of 0.286 yuan per share in 2020, with a dividend rate of more than 50%.
The gross profit margin of core products has risen steadily. In 2020, methyl ethyl ketone, as one of the company's important products, continued to maintain good profitability, with a gross profit margin of 26.23%, the highest among the company's products, and a domestic market share of about 50%. Maleic anhydride continues to improve profitability and market competitiveness, the company is the world's largest manufacturer of maleic anhydride. In 2020, the average price of methyl ethyl ketone and maleic anhydride in East China was 6996 yuan / ton and 6708 yuan / ton respectively, which was-9.4% and + 4.3% compared with the same period last year, and the gross profit margin of the company's products increased by 0.25% and 5.78% respectively.
Asset impairment also has a certain impact on the company's performance. In 2020, the amount of provision for impairment of assets is about 80.5 million yuan, the loss of impairment of assets is reduced by 76.8825 million yuan, and the loss of impairment of assets accounts for 8.25% of the absolute value of the net profit of the company in 2020. Of this total, goodwill impairment is about 44.47 million yuan, credit impairment is 25.25 million yuan, and inventory impairment is 11.09 million yuan.
Projects under construction are progressing steadily. The company is steadily advancing the following projects: 1) 200000 tons of MMA project, all of which have been put into production; 2) 700000 tons of PDH and 300000 tons of propylene oxide project, the order of the main key equipment of the PDH project has been basically completed, the on-site construction has been advanced as planned, and the propylene oxide project has been completed, energy assessment and environmental assessment, etc. 3) 200000 tons of isononyl alcohol project, with a total investment of 1.798 billion yuan, of which 200,000 tons / year isononyl alcohol plant is expected to invest 750 million yuan, with a construction period of 2 years. At present, the examination and approval of the project has been completed. 4) 1 million tons of nylon 66 project, the first phase includes 300,000 tons / year acrylonitrile co-production of hydrocyanic acid plant, 50,000 tons / year sodium cyanide plant, 90,000 tons / year hydrocyanic acid plant, 200,000 tons / year adiponitrile plant, 200,000 tons / year hydrogenation unit and 200,000 tons / year nylon 66 salt and slicing plant 5) 200000 tons of nitrile latex, mainly used in nitrile gloves, of which 90% are used in medical gloves and have been put into production, which is the largest production capacity of nitrile latex in China. 6) build a new 100000-ton maleic anhydride project. By the end of 2020, the construction of the company's project has been significantly accelerated, including 12.57% of the 700000-ton PDH project, 8.99% of the 300,000-ton epoxy propane project, 5.10% of the 200,000-ton isononanol project, 5.10% of the 200,000-ton isononyl alcohol project.
Profit forecast and investment rating. We estimate that the company's EPS in 2021-2023 will be 0.98,1.00,1.12 yuan respectively. According to the 2021 EPS and 18-22 times PE, we will give the company a reasonable value range of 17.64-21.56 yuan, giving it an "better than the market" rating.
Risk hint: the prices of raw materials and products fluctuate greatly; the progress of project construction is not as expected.